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Boston Mayor Marty Walsh pulls city from arbitration with Wynn, calls city's position a 'no-win situation'

Marty Walsh calls stalemate with Wynn a 'no win situation'Boston Mayor Martin J. Walsh said the city will use a unique part of the state's gaming law that will force the Gaming Commission to craft surrounding community agreement with Wynn. The city notified the commission today that they are opting out of the arbitration process.

BOSTON — Mayor Martin J. Walsh has withdrawn Boston from arbitration discussions with Wynn Resorts, effectively placing the burden of deciding the terms of a surrounding community agreement in the hands of the Massachusetts Gaming Commission.

A frustrated Walsh told reporters outside Boston City Hall on Thursday that he was withdrawing the city from the arbitration process because it was the best option left on the table for the city. The move by the city effectively places the commission in the position of deciding what the terms are for the surrounding community agreement between Wynn and Boston.

The decision by Walsh to withdraw from arbitration with Wynn is a tactic covered in the state casino law, but it is not one without possible downsides for Boston. Walsh's relationship with the commission has been, at best, rocky since he took office as mayor and he has made his dissatisfaction with the body well known.

The commission is now in the position of crafting a compensation package for the city and, if it so chooses, it could come up with one that is paltry compared to its $300 million 15-year deal with Mohegan Sun. City officials, including Walsh, said it will be difficult for the city to make the proper arguments that will help its case before the commission without additional information from Wynn.

"There are so many unanswered questions around the Wynn application," said Walsh.

Walsh told reporters that Wynn offered the city $600,000 in annual payments as a surrounding community, as well as additional benefits like a harbor walk.

It was unclear at press time if this was the first time the commission acted as an arbitrator between a community and a casino license applicant.

Walsh said that going to the commission instead of a traditional arbitrator would make it easier for the city to address what it says has been a lack of information from Wynn on things like the environmental impact of the project. The city needs to justify every dollar requested in mitigation payments from Wynn when it goes before the commission in this manner.

"They've made all the decisions along the way for Boston up to this point. I am going to let them make the decision on what benefits Boston should get if they choose Wynn," said Walsh.

As he has before, Walsh expressed disappointment in the commission's repeated refusal to grant host community status to Boston and said that its actions placed the city in a difficult position and with few options. Walsh insisted that the city is still a host community for both the Wynn Resorts casino in Everett and the Mohegan Sun casino in Revere.

"It's unfortunate we're in this situation, the commission forced our hand, tied our hands every step of the way, I felt like, from the beginning," said Walsh.

Emails to Wynn and the gaming commission for comment were not immediately returned. They will be added to the story when they're received.